Indian markets fell sharply on Monday as Asian markets tumbled as another round of tepid data added to concerns about China's economy, which is already responsible for sparking a rout across global markets at the start of the year. The Sensex fell over 300 points while Nifty fell below the important support level of 7,500. The rupee too edged towards 67/dollar.
Here is a 10-point cheat-sheet
1) China shares fell nearly 2.5 per cent, sparking a selloff in other Asian markets. On Saturday official figures showed Chinese consumer prices picked up slightly in December but inflation remained about half the government's target. Prices paid at the factory gate, a guide to future inflation, also sank for a 46th consecutive month.
2) The rupee would be closely watched today. The Indian currency fell to 66.92/dollar against Friday's close of 66.63. The US reported strong job numbers for December, a development that could led to a broad rise in dollar amid expectations of a Fed rate hike in March.
3) A tumble in Chinese markets had led to a global selloff last week with Nifty slumping 4.5 per cent during the week.
4) Foreign investors sold Indian stocks worth nearly Rs 3,000 crore last week on a net basis, weighing on Indian markets.
5) Domestic institutional investors bought Indian equities worth nearly Rs 1,350 crore providing some support.
6) Market analysts don't rule out the possibility of Nifty slumping to 7,300 levels, driven primarily by global concerns, particularly depreciation of Chinese currency yuan and worries about China's economy.
7) However, Indian markets could rebound sharply, they say, if third-quarter earnings of Indian corporates surprise on the upside and there are positive developments on the GST front.
8) TCS reports its Q3 earnings tomorrow, kicking off the results season.
9) However, some analysts suggest Indian investors accumulate stocks from a long-term perspective taking advantage of the current market volatility. The turmoil in Chinese markets could drive inflows into India, which remains a positive story among emerging markets, they say.
10) "It is the perfect time for buying India (Indian equities). Because if ever there has been a case for India outperforming China, it is now," said Sanjiv Bhasin, executive vice president for markets & corporate affairs at India Infoline.